Vodafone Idea FPO Launches Tomorrow: Secure Investment Opportunity Till April 22, ₹5,400 Crore Raised from Anchors

Vodafone Idea (Vi), a prominent player in the telecom sector, is gearing up to launch its Follow-on Public Offering (FPO) amidst financial challenges. Scheduled to commence on Thursday, April 18th, the company aims to raise a substantial sum of ₹18,000 crores through this initiative.

Investors will have the opportunity to participate in the bidding process until April 22nd. Noteworthy entities such as the American investment firm GQG Partners and SBI Mutual Fund are poised to collectively invest up to $800 million (approximately ₹6,500 crores) in this FPO. This move signifies a concerted effort by Vi to alleviate financial pressures and strengthen its position in the telecommunications market.

Vi Attracts Anchor Investors Worth ₹5,400 Crores Ahead of FPO

Prior to the commencement of the Follow-on Public Offering (FPO), Vodafone Idea (Vi) has successfully secured ₹5,400 crores from 74 anchor investors. The company disclosed this information in its filing with the BSE. Vi has issued a total of 491 crore shares at a price of ₹11 per share for this purpose.

Among the anchor investors, GQG Partners has acquired the largest share, receiving 26% of the shares, amounting to a ₹1,345 crore investment. Additionally, Fidelity Investments has invested ₹772 crores, True North and Australian Super have contributed ₹331 crores and ₹130 crores respectively.

The anchor investor list includes prominent names such as The Master Trust Bank of Japan, UBS, Morgan Stanley Investment Management, Citigroup Global Markets, Australian Super, Fidelity, Quant, and Motilal Oswal.

Vi’s Monumental FPO Marks India’s Largest Offering Yet

The ongoing Follow-on Public Offering (FPO) by Vodafone Idea (Vi) stands as the largest FPO in the country’s history. Earlier, Yes Bank held the record with an FPO valued at ₹15,000 crores. 

However, Adani Enterprises surpassed this milestone in January with a ₹20,000 crore FPO, which was subsequently withdrawn by the company. Had it not been withdrawn, Adani Enterprises would have emerged as the largest company to raise funds through an FPO.

Vodafone Idea’s FPO announcement comes amidst its plans for 5G rollout. In a regulatory filing, the company stated its intention to utilize the funds from the FPO for 5G deployment, improving 4G services, and fulfilling tax and other obligations. This bold move is expected to enhance the company’s competitive position and deliver a better customer experience.